Mountain Vista Wealth Management

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Q2 2025 Investment Letter

INTRODUCTION

“Volatility is the price of admission. The prize inside are superior long-term returns. You have to pay the price to get the returns.” 
– Morgan Housel

Short-term stock market investing is not for the faint of heart. In April, we were reminded once again that stocks can suffer substantial mark-to-market losses in a very short period. During these times, it is prudent to avoid converting a temporary loss into a permanent one by selling. Furthermore, if you have additional capital to invest, you should consider buying during market downturns. [Read more…] about Q2 2025 Investment Letter

Social Security: Beyond the Basics

Most Americans know that Social Security provides retirement benefits, but many are unaware of the program’s full scope and the various benefits available. From spousal benefits to disability coverage, Social Security offers financial protection that extends far beyond what many people realize. This article explores some lesser-known aspects of Social Security that could significantly impact your financial planning. [Read more…] about Social Security: Beyond the Basics

Q1 2025 Investment Letter

INTRODUCTION

“The markets take the stairs up and the elevator down.” 
– Tim Egart

While the stock market has historically delivered impressive 9-10% long-term returns, many investors fail to capture these gains. When market conditions deteriorate, prices adjust rapidly, making it challenging to exit declining positions during negative news cycles. More critically, selling after a market decline can erase years of accumulated wealth. [Read more…] about Q1 2025 Investment Letter

Case Study: The Value of Diversification

In recent years, some investors have questioned the merit of diversification during the prolonged U.S. tech-dominated bull market. With American tech giants delivering extraordinary returns, international investments sometimes seemed unnecessary. Furthermore, rising interest rates created a scenario, in 2022, where bonds failed to provide their traditional protection during stock market declines.

However, 2025’s market volatility offers a powerful reminder of why diversification remains a cornerstone principle of sound investing. [Read more…] about Case Study: The Value of Diversification

Q4 2024 Investment Letter

INTRODUCTION

“Invest for the long haul.  Don’t get too greedy and don’t get too scared”
– Shelby M.C. Davis

As we enter 2025, let us take a moment to reflect on the truly amazing investment period that we have just lived through.  The S&P 500 and Nasdaq 100 delivered total returns of ~25% in 2024, following gains of 26% and 54% in 2023 – culminating in two-year returns of 58% and 92%, respectively.

Now that we are feeling good, we should reflect on the conditions that set up such tremendous gains.  2022 was one of the most difficult investment periods of my career.  The S&P 500 lost (-19%) over the year (with a peak draw down of (-25%) from its 2021 high) and the Nasdaq 100 lost a third of its value over the year.  Even bonds offered little shelter, with the Bloomberg U.S. Aggregate bond index losing(-13%), including dividends, and suffering a peak loss of (-17%). [Read more…] about Q4 2024 Investment Letter